Helmerich & Payne, Inc. (HP) vs Valaris Limited (VAL)

Helmerich & Payne, Inc. and Valaris Limited are both Oil & Gas Drilling companies. Valaris Limited is the larger, with a market value of $5.7B against $4.0B — 1.4× the size. Helmerich & Payne, Inc. has negative trailing earnings, so its P/E is not meaningful; Valaris Limited trades at 6.0×. Helmerich & Payne, Inc. grew revenue faster over the last twelve months: 16.6% against −13.2%. Valaris Limited has the higher net margin (44.0% vs −3.43%) and the higher return on invested capital (4.00% vs 1.32%). Across the 20 metrics below, Helmerich & Payne, Inc. leads on 11 and Valaris Limited on 9.

Valuation

Metric HP VAL Oil & Gas Drilling median
P/E n/m 6.01 —
P/S 0.97 2.63 1.37
P/B 1.45 1.74 1.35
Price to free cash flow 7.91 38.31 15.47
EV/EBITDA 6.61 21.37 8.26
EV/Sales 1.37 4.06 2.31
Earnings yield (3.64%) 16.63% (2.10%)
Free cash flow yield 12.65% 2.61% 3.40%

Profitability

Metric HP VAL Oil & Gas Drilling median
Gross margin 28.82% 24.78% 39.29%
Operating margin 2.25% 11.27% 7.77%
Net margin (3.43%) 43.95% 0.00%
Free cash flow margin 12.25% 6.85% 4.46%
Return on equity (4.95%) 33.85% (2.78%)
Return on assets (2.08%) 18.88% (1.64%)
Return on invested capital 1.32% 4.00% 2.29%

Growth

Metric HP VAL Oil & Gas Drilling median
Revenue growth (TTM) 16.57% (13.22%) 4.14%
EPS growth (last fiscal year) (148.40%) 172.18% —
Revenue growth, 5-year CAGR 16.13% 10.67% 13.40%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HP VAL Oil & Gas Drilling median
Debt to equity 0.70 0.34 0.61
Current ratio 1.96 1.55 1.89
Net debt to EBITDA 2.87 0.78 0.90

Dividend

Metric HP VAL Oil & Gas Drilling median
Dividend yield 3.73% — —
Payout ratio 0.45 0.00 0.00

Size

Metric HP VAL Oil & Gas Drilling median
Market cap 3.98b 5.68b 3.98b

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